New Ohio law grants sales-tax exemption for bullion purchases
- Published: Jul 14, 2021, 10 AM
Ohio Gov. Mike DeWine July 1 signed a bill that includes a provision for sales tax exemption on purchases of investment metal bullion and investment coins, an exemption eliminated in a prior budget. Ohio joins 39 other states in again offering a sales-tax exemption.
Two bills were introduced that had the possibility of reinstating the exemption. House Bill 268 was considered by the Ohio Senate Finance Committee and the Ohio House Ways and Means Committee in May. The measure was passed by the Ways and Means Committee, but no further action was taken.
The state budget, House Bill 110, was passed after the Senate insisted on amendments and requested a committee of conference. One of the amendments called for amending Ohio Revised Code Section 5739.02: Levy of sales tax, purpose, rate exemptions.
The amendment defined exemption for the sales of investment metal bullion and investment coins. “Investment metals bullion” means any bullion described in section 408 (m)(3)(B) of the Internal Revenue Code, regardless of whether that bullion is in the physical possession of a trustee. “Investment coin” means any coin composed primarily of gold, silver, platinum, or palladium.
Under the definition, collectible coins made of other material such as copper and nickel, as well as paper money, do not qualify for the exemption.
National Coin and Bullion Association executive director David Crenshaw said, “The dealer and collector communities, in conjunction with the NCBA, put a tremendous amount of hard work into the grassroots campaign.”
The exemption becomes effective on Oct. 1, 2021.
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